Meeting documents

            Meeting: Audit Committee (County Hall, Durham - Committee Room 1B - 06/06/2008 09:00:00 AM)

                  Item: A1 Minutes

         

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AT A MEETING of the AUDIT COMMITTEE held at the County Hall, Durham on THURSDAY 6 JUNE 2008 at 9.00 a.m.

PRESENT Councillors
Carr, Cordon, Ord and Temple

Non Voting - Co-opted Members
Mr Hoban and Ms Larkin-Bramley

A1 Minutes

The Minutes of the Meeting held on 13 March 2007 were confirmed as a
correct record and signed by the Chairman.

For the benefit of the New Members of the Committee the County Treasurer
outlined the proposals to provide training as the work of the Committee developed. This would include a training package offered by the Audit Commission as well as “just in time” training on specific areas of work throughout the year.

The Chairman also set out his intention to hold “Pre-Audit Committee” briefings on the Monday preceding the formal meeting to identify specific areas/issues for examination.

Councillor Carr also requested that the Corporate Risk Report discussed under Minute A7 be provided to new Members, together with a summary of the Corporate Risk Manager’s oral report given under Minute A8 and the Induction Pack provided to the co-opted Members under Minute A10.

A2 Declarations of interest
Ms Larkin-Bramley informed the Committee that she served as an
Independent Member of the Police Authority.

The acting Director of Corporate Services advised that Members would only need to declare an interest as a school governor, if there was a specific issue relating to their school on the agenda.

A3. The Work of Internal Audit in relation to Year Ended 31 March 2008

The Committee considered a report of Head of Internal Audit and Risk
Management (for copy see file of Minutes) providing an insight into the work
carried out by Internal Audit during the year ended 31 March 2008 and prior
to the preparation of the Annual Governance Statement (AGS) (previously the Statement of Internal Control). The Head of Internal Audit and Risk Management is required to give an independent opinion on the adequacy and effectiveness of the systems of internal control operating within the Council and his conclusion for 2007/08 is that the key financial systems continue to provide an adequate basis for effective control ensuring the efficient, effective and economic operation of the Council’s affairs. Neither have any significant weaknesses been identified or brought to his attention by senior officers who have responsibility for these controls.

With reference to paragraph 14 the Head of Internal Audit and Risk
Management explained that the necessity to reduce the number of audit days
had arisen as result of the non-filling of staffing vacancies. These vacancies were being held bearing in mind the need to achieve savings as part of Local Government Reorganisation.

In response to a question from Councillor Ord about the statutory requirement
to review the whole audit system the Head of Internal Audit and Risk
Management outlined how internal audit was subject to a robust review by the External Auditors every three years. All of the key issues from the last review had been addressed. A copy of the report would be circulated to Committee Members for information.

It was also acknowledged that the Audit Committee had a valuable role to play as [part of this process and this could be specifically addressed as part of the ongoing training.

With reference to paragraph 11 the County Treasurer updated the Committee on the roll out of the Oracle Systems from October 2008.

The County Treasurer also confirmed in response to a question from Mr. Hoban that the comments of the Audit Commission arising from the Annual Audit and Inspection about the economic development of the County had been recognised and were being addressed.

Resolved:

That the report be noted.

A4. Issues for Inclusion with the 2007/08 Annual Governance Statement

The Committee considered a report of Head of Internal Audit and Risk
Management (for copy see file of Minutes) about the issues identified for
inclusion within the year’s Annual Governance Statement, which is to be
presented to the County Council as part of the Statement of Accounts on 26th June 2008.

The County Treasurer explained that the Committee would have further
opportunity to comment on the issues within the AGS between the County Council meeting on 26th June and the Statement of Accounts County Council meeting on 23 September 2008.

Resolved:

That the recommendation in the Report be agreed.

A5. Review of the Effectiveness of the System of Internal Audit

The Committee considered a report of Head of Internal Audit and Risk
Management (for copy see file of Minutes) about the review of the effectiveness of the Council’s system of Internal Audit, which supports the Annual Governance Statement.

Resolved:

That the recommendation in the Report be agreed.

Attachments

 06.06.08 minutes.pdf